February 24 2020
Sesa Sterlite to be parent company for Anil Agarwal's India operations
24 February 2012

In a mega restructuring of Anil Agarwal's Vedanta Group, Sterlite Industries to merge with Sesa Goa at a share swap of 5:3, the combined company will be re-named Sesa Sterlite, sources with direct knowledge said.

Vedanta Resources to transfer it's 38.7% stake in Cairn India to Sesa Sterlite along with debt of $5.9 bn taken for Cairn India acquisition. As part of restructuring, Vedanta Resources will also transfer it's 70% stake in Vedanta Aluminium to Sesa Sterlite. Vedanta Resources is expected to hold close to 60% stake in Sesa Sterlite post all share transfers.

Rejig to help Vedanta Resources to reduce debt burden from $9 bn to $3 bn. Sesa Sterlite on the other hand will be a much stronger entity with healthy cash position of Cairn India. Through the merger Sesa Sterlite will get tax benefits on account of VAL, while the debt given by Sterlite to VAL will be offset, sources said.



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